Stephen Crabb

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Ministers are to signal this week that they are prepared to bust the 1% pay cap for police and prison officers, as a first step towards recognising the concerns of cash-strapped workers across the public sector.

Ken Clarke has been caught on camera describing Theresa May as a “bloody difficult woman” and predicting that Michael Gove as prime minister would go to war with three countries at once, as he made a series of unguarded remarks about the Conservative leadership candidates.

Theresa May stormed ahead in the race to become the next prime minister, winning the backing of half of all Conservative MPs in a first round contest that saw Stephen Crabb drop out of the race and endorse her after he slipped into fourth place.

Britain would be “permanently poorer” if voters choose to leave the EU, George Osborne has warned, as a Treasury study claimed the economy would shrink by 6% by 2030, costing every household the equivalent of £4,300 a year.

David Cameron has been forced to concede that a £4.4bn black hole created by the U-turn over disability benefits will not be filled by further cuts to welfare as he fought to shore up his credibility following the shock resignation of Iain Duncan Smith.

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Ministers are to signal this week that they are prepared to bust the 1% pay cap for police and prison officers, as a first step towards recognising the concerns of cash-strapped workers across the public sector.